KARACHI: Amid a slowdown in fossil fuel vehicle sales and prevailing political and economic uncertainty, several auto players in the market are set to test the waters by introducing imported electric vehicles (EVs) to gauge demand before establishing local assembly lines.
Sazgar Engineering Works Limited (SEWL) announced in a stock filing on Tuesday that the company is planning to launch a new imported completely built-up (CBU) electric vehicle, ‘ORA-7 EV’, over the next couple of days, with bookings to commence shortly thereafter.
While many assemblers are struggling to sell their petrol- and diesel-driven vehicles, SEWL has gained a competitive edge by selling 5,328 units of HAVAL, with Arif Habib Limited (AHL) forecasting a 58 per cent year-on-year increase in sales to 8,400 units in FY25.
The launch of Toyota Corolla Cross, the upcoming 12th generation Toyota Corolla hybrid sedan, and hybrid and electric models from KIA (Sportage and Sorento), Changan, Chery, and Honda (HR-V) is expected to pose significant challenges to Sazgar’s market dominance.
According to AHL’s forecast for FY25-FY29, Sazgar’s sales are projected to grow at a four-year cumulative annual growth rate (CAGR) of 2.7pc, reaching 9,380 units by FY29.
Three firms to launch new imported electric vehicles within a week
Sazgar has effectively utilised the customs duty benefits offered under the Auto Policy 2021-26 (AIDEP) and the Greenfield status granted under AIDEP 2016-21, which provides reduced customs duties of 3-4pc on hybrid vehicle parts and a lower GST of 8.5pc, as well as concessional duties on both non-localised and localised parts due to the Greenfield status.
According to market sources, Master Changan Motors is set to unveil an ambitious plan for a nationwide EV charging network during the launch of its new brand, DEEPAL (sedans and SUVs), on August 16 at Dolmen Mall Clifton, Karachi.
Meanwhile, BYD of China, in partnership with Mega Motor Company in Pakistan, is launching its fully electric and plug-in hybrid electric vehicles on August 17, with plans to establish a comprehensive charging infrastructure to support the widespread adoption of electric vehicles nationwide.
MG introduced the imported ZS EV in 2021, followed by the new MG ZS EV and MG4 in January 2024. These vehicles require maintenance only once every 15 months due to no engine oil and parts like oil filters and spark plugs.
To further boost EV adoption, active government subsidies, similar to those in Thailand, will be necessary. However, market sources indicate that these launches could mark a significant turning point for Pakistan’s electric vehicle landscape, addressing a major concern for EV owners: the development of charging infrastructure.
“There are only 21 EV charging stations but only in five cities (Karachi, Lahore, Islamabad, Multan and Peshawar), which are insufficient for mass EV adoption across the country,” the sources said.
Some EV owners have expressed frustration due to the scarcity of charging facilities. For instance, despite the presence of a charging station at Bhera, travellers from Lahore to Islamabad find it inconvenient as it adds a 45-minute wait at Bhera and another 45-minute wait upon entering Islamabad, thereby extending their journey from four hours and 30 minutes to approximately seven hours.
The country not only needs a robust network of charging stations but also electric vehicles with a range of at least 400-500km in a single charge, the sources said.
All eyes are now on the auto players importing EVs to rise to the challenge and expand their charging network to 10-15 smaller cities, which could ultimately make EVs a viable option for the masses.
It has been observed that buyers of high-end Honda Civic and Toyota vehicles with larger engine capacities may increasingly switch to EVs due to the price similarity with EVs and the opportunity to drive a brand-new, fully loaded vehicle with cutting-edge technology.
Dewan Farooque Motors Limited (DFML) has signed a toll manufacturing agreement with ECO Green Motors Limited to produce Honri VE electric vehicles, with a range of 200-300km. The production is expected to commence this month.
According to DFML, the necessary jigs for EV manufacturing have been installed, and the Engineering Development Board’s technical team is currently conducting a physical verification of the company’s assembly plant facilities.
Published in Dawn, August 14th, 2024
